Fusion Microfinance, a microfinance company backed by private equity firm Creation Investment and a unit of Warburg Pincus Will bring an IPO of Rs 600 crore. For this, it has filed Preliminary Documents (DRHP) with SEBI. Through this IPO of Fusion Microfinance, which operates in rural and semi-urban areas, existing promoters Devesh Sachdev, Creation Investment Fusion and Warburg Pincus-backed Honey Rose Investments will sell its stake. Post listing, the company will join the ranks of other micro finance companies including Ujjivan Small Finance Bank, Suryoday Small Finance Bank and Bandhan Bank.
35% reserved for retail investors
Fusion Microfinance will launch an IPO of Rs 600 crore. Along with the issue of new shares in this 2,19,66,841 equity shares will be sold under the offer for sale.The company has said that it will use the funds raised through its IPO to increase the capital base. Prior to the IPO, the promoter group of Fusion Microfinance and other promoters have 85.5 per cent stake in the company. The funds raised through the offer for sale will go to the promoters who sell the stake. Fusion Microfinance has said that it will raise Rs 120 crore through private placement ahead of the IPO. According to the company’s DRHP, 50 percent QIB and 35 percent of the IPO will be reserved for retail investors. The remaining 15 percent will be for non-institutional investors i.e. NII.
Allotment of 1838 crore IPO shares of Devyani International today, you will be able to see the status of the application like this
good company performance
In the financial year 2018-19, the income of Fusion Microfinance was Rs 873 crore. Whereas in its last financial year it earned Rs 497 crore. The company had a net profit of Rs 50 crore in 2018-19, while its profit in the financial year 2019-20 was Rs 69 crore. However, due to COVID, it came down to Rs 43.9 crore next year.